"Dealmaking is heating up again, and founders eyeing an IPO or sale are facing a new kind of challenge: what to do with the sudden wealth that follows. A new 25-page report published by Goldman's private wealth and investment banking professionals lays out the decisions founders need to prepare for once they cash out. It outlines six steps that company leaders should take: be clear about your business's future, consider tax structures,"
"The report - "Beyond the Build: A Wealth Planning Guide for a Business Exit or IPO" - walks readers through how to structure a deal, manage new liquidity, and prepare the next generation for a sudden influx of wealth. "When I look at the work that we do with founders and entrepreneurs, we really have to think about the entire life cycle" across the corporate and personal lenses, said Blum, a Goldman partner."
Founders approaching an IPO or sale face urgent choices about managing sudden, life-changing wealth. Key preparations include clarifying the business's future, choosing tax-efficient structures, establishing family and estate plans, organizing liquidity, accounting for outstanding loans and liabilities, protecting assets and family, and creating a philanthropic strategy. Early planning enables optimal deal structuring, smart capital decisions, minimized tax exposure, and smoother wealth transition to the next generation. Increased merger and IPO activity has raised the number of founders needing these plans. Effective advising requires evaluating both corporate and personal considerations across the founder's full life cycle.
Read at Business Insider
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